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Restaurants

Whitbread to consider selling restaurant brands

The company’s total UK accommodation sales were 37% ahead of pre-pandemic levels as the group posted a profit before tax of £375m

Whitbread, owner of Premier Inn, is considering selling part of its pub and restaurant brands to focus on its hotel arm, according to reports from the Telegraph.

The Premier Inn owner has reportedly hired advisors to explore options for a sale of part of its F&B businesses.

If Whitbread was to advance down this road that would mean brands such as Brewers Fayre and Beefeater would be up for grabs.

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The news follows the company’s recent acknowledgement of its slower recovery since the pandemic, in comparison to Premier Inn’s performance.

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Back in April Whitbread reported revenues of £2.6bn, 27% ahead of pre-pandemic levels, for 2022/23.

The company’s total UK accommodation sales were 37% ahead of pre-pandemic levels as the group posted a profit before tax of £375m.

Despite this its food and beverage sales were 4% lower than pre-pandemic levels,

Dominic Paul, chief executive, said: “The UK pub restaurant market remains challenging with the cost-of-living crisis and high inflationary pressures impacting the recovery in demand.

“Although higher levels of hotel occupancy meant that F&B sales were 40% ahead of 2021/22, they remained 4% behind 2019/20. Despite an increase in spend per head, customer volumes at our branded restaurants, that are focused at the value-end of the market, remained below pre-pandemic levels.”

 

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